Logistics Market Report Austria 2026

Geopolitical tensions, particularly in connection with the Iran conflict, continue to cause a heightened level of uncertainty and are dampening momentum. Nevertheless, spillover effects from other markets could provide sporadic support over the course of the year and give the sector a positive boost.

 

The ECB’s decision to keep interest rates unchanged in March 2026 reflects a cautious approach to maintaining stability. Any adjustment in 2026 will depend largely on geopolitical developments in the Middle East. Should inflation and energy prices rise in the longer term, a further interest rate hike cannot be ruled out.

Construction costs, which rose only moderately last year, have noticeably reduced cost pressures for many developers. The main cost drivers at present are higher labour costs, whilst material prices have largely stabilised.

 

The slight rise in land prices is likely to continue into 2026. Prices are expected to rise at a moderate pace in the medium term, not least due to the increasingly restrictive stance adopted by many local authorities towards logistics projects. The generally restrictive stance adopted by local authorities in many places towards rezoning land for logistics projects in order to prevent further land sealing will lead to a potential shortage of land supply in the medium term. 

 

The slump in market demand showed slightly positive trends towards the end of 2025. However, the current subdued demand for large sites will only allow for a small increase in 2026 as well.

 

Similarly, a slight rise in rents is expected. Until the new development space created in recent years has been fully absorbed, new projects will increasingly only be carried out if there is sufficient pre-letting.

 

The easing of the EU Supply Chain Due Diligence Directive (CSDDD) in 2026 will primarily provide some breathing space: the immediate regulatory pressure will ease, particularly for small and medium-sized enterprises, whilst large companies and investors will continue to demand high ESG and supply chain standards.